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HomeMy WebLinkAbout14 Report 98-103 Plan of Action for Effective and Efficient Business Practices13 ,1 Ottawa - Carleton District School Board This report is the original version March 23, 1998 Report No. 98 -103 to the Board Re: Plan of Action for Effective and Efficient Business Practices ORIGINATOR: Michael E. Clarke, Superintendent of Business and Treasurer PURPOSE: To provide Trustees with a status report on action relative to staff fulfilling the Board's direction with regard to the implementation of effective and efficient business practices. To update Trustees on staffs progress in preparing the Board's application for transition funding from the Province. BACKGROUND: As part of the preparation for amalgamation, staff planned the method by which the two predecessor organizations must be combined. Operations, human resource, and computer systems have all been addressed as part of Senior Administration's plan. (ow 2. Major components of the plan have already been implemented. The accounting and purchase order systems of the former Ottawa Board of Education have been successfully converted to the SRB software application. Conversion of the demographic transportation, payroll, and human resources software systems is well underway. Interim organization structures were implemented which comply with both legal requirements and the guiding principles endorsed by the Board, while also providing the Board with the operating systems to manage 154 school sites. All central departments have integrated the relevant components of the predecessor boards. 3. The remaining parts of the amalgamation plan are continuing to be implemented in accordance with the plans previously reviewed with Trustees. 4. The implementation has been complicated by the Province's announcement of its intentions to reduce the funding previously received by the Board's predecessor boards. If the Province proceeds, the Ottawa- Carleton District School Board will be obliged to significantly downsize its administrative structure. Accomplishing this while still implementing the amalgamation of two large predecessor boards is challenging. 5. The Province has announced a $215 million restructuring fund to assist school boards in making the necessary adjustments to achieve significant administrative savings, assist with one -time start up costs of the new French- language Boards, and implementing new communication technologies and information systems to permit more effective operations. The Province stressed that it would give funding priority to activities that demonstrate co- operation among school boards and other private and public sector partners. The Province originally set a March 31, 1998 application deadline, which was subsequently extended to April 30, 1998. 6. On February 23, 1998, the Board approved a motion mandating staff to prepare a plan of action for the design and implementation of efficient and effective business practices (Appendix A). 7. Trustees began consideration of staff's response (Appendix B) to the Board direction at the March 9, 1998 meeting. Completion of the discussion was deferred until the March 23, 1998 meeting. /�l -2- STATUS: 8. It is staff's intent to immediately proceed with selection of an overall project consultant, with further consulting services being obtained as required in each review area. The revised plan is set out in Appendix C. 9. Staff would also suggest that a Trustee be named to the amalgamation project steering committee. This will allow a more detailed understanding by the Board of the implications of the redesign plans and implementation issues. 10. Senior Administration is also expanding the areas outlined in its March 9, 1998 report to explicitly include Board Services. This area was always part of the overall review, but questions received indicate that staff had not been clear about this in the original report. The central administration budget option (Appendix D) presented to the Board at the March 9, 1998 meeting indicates the seriousness with which Senior Administration treats the Province's intentions to force a downsizing in administration. 11. Staff are proceeding with the preparation of an application for the Province's transition funds. Senior staff have met with their counterparts from the other local school boards, and joint applications are planned with one or more of the local school boards in the following areas: • Purchasing Co- operative • Transportation Administration and Service Delivery • Long -Range Enrolment Planning Systems • Facilities Studies • Broadband Municipal Area Network • Merger and Conversion of Student Information Computer Systems • Media Centre Services • Administration of Extra - Curricular Sports Activities • Program Delivery for Developmentally - Delayed Students • Evaluation of Potential Inter -Board Administrative Tools (computer hardware, software applications related to Finance, Accounting, Payroll, Human Resource Information Systems) 12. Staff are also preparing applications for eligible areas of amalgamation costs that apply to the OCDSB. These include: • Desktop Architecture Standardization and Business Process Re- engineering • Network Operating System Upgrade • Merger of Computer Systems for Automated Financial and Human Resource Systems • Merger of EDULOG Databases • Merger of Telephone Systems and Network Interface • Merger of Electronic Mail Systems • Preparation of Harmonized Human Resource Policies, Procedures and Practices • Preparation of Harmonized Administrative Policies, Procedures and Practices • Records Management • Costs of Relocating Staff and Offices due to Amalgamation • Merger and Streamlining of Plant Operations and Maintenance Functions • Retirement Incentive Plan to Facilitate Staff Downsizing 13. Staff had originally planned to present the draft application to the Board at its March 23, 1998 meeting. The Province's extension to April 30, 1998 allows staff to prepare more joint submissions which the Province has indicated have a higher probability of being funded. Co- ordinating a multi -board submission adds extra time to the process. /15g, -3- RECON MMNDATION: A. That the Board approve the Plan of Action outlined in Appendix C. B. That the Board name a Trustee representative to the Steering Committee. `C Michael E. Clarke, Superintendent of Business and Treasurer. Report No. 98 -103 re Plan of Action for Effective and Efficient Business Practices March 23, 1998 APPENDIX A MOTION AT BUSINESS SERVICES COMMITTEE MEETING OF 11 FEBRUARY 1998 APPROVED BY BOARD ON 23 FEBRUARY 1998 _ WHEREAS the Ottawa - Carleton District School Board is being created from two predecessor boards, whose business processes in the non - academic functions were dissimilar to varying degrees and must now be recreated to yield the most efficient and effective processes possible; WHEREAS funding for the Ottawa - Carleton District School Board is expected to be significantly less than the total funding that was available to the two predecessor boards because of the Ontario government's redistribution of funds and anticipated across - the -board cuts to those funds; WHEREAS the Ontario government clearly expects school boards to minimize costs "outside the classroom" and maximize resources consumed directly in the classroom; WHEREAS a three to four page summary plan for the design and implementation of efficient and effective business processes which would reduce costs "outside the classroom" for the fiscal year beginning 1 September 1998 would facilitate and expedite the work of the Board; WHEREAS such a plan should focus on areas such as Finance and Administration (including payroll, procurement, warehousing and the media centre); Custodial Services; Plant Maintenance and Energy; Human Resources; and Information Technology; WHEREAS an effective plan should reflect, but not necessarily be limited to, the following principles: • world class business practices will be sought, not only from exemplary school boards, but also from other jurisdictions and the private sector; • users of business services will be consulted as to their real needs to ensure both that those needs are met and that the business processes are not over - designed; • information technology will be used to full advantage, with care being taken not to over - design the systems; • extensive communication and consultation will be used to ensure that the best possible results are achieved, that staff are well informed about the initiatives, and that a strong common culture of service to the schools emerges; • specific cost reduction targets will be established for each business area as soon as possible after the funding formula is received from the Ministry of Education and Training; • the design of these processes will take into account the emerging roles of principals and vice - principals, and the nature and extent of site -based (W management that is planned in the new Ottawa - Carleton District School Board. l4°. WHEREAS there are a number of consulting firms with the required expertise who could be invited to indicate which areas are of interest to them (Finance and Administration, Custodial Services, Plant Maintenance and Energy, Human Resources and Information Technology), the range of services they might provide (from facilitation or coaching to full implementation), the pricing /costs for their services; and the availability of qualified staff from now until December 1998; THEREFORE BE IT RESOLVED: A. THAT staff prepare, for presentation to the Board on 9 March 1998, a summary plan of action, including timelines, for the design and implementation of efficient and effective business practices, which would have as its objective the reduction of 'outside of classroom" costs for the fiscal year beginning 1 September 1998. B . THAT staff be authorized to immediately issue a request for expressions of interest from consulting firms with the required expertise. C. THAT subsequently, for each project s such as Finance and Administration, Custodial Services, Plant Maintenance and Energy, Human Resources and Information Technology, a short list of firms be drawn up and proposals be requested from those firms. D. THAT a Senior Staff Steering Committee be established to oversee the projects. E. THAT a submission be made to the Ministry of Education and Training immediately requesting approval in principle for transition funding for these projects on the grounds they are essential if the Ottawa - Carleton District School Board is to achieve the lowest possible cost structure outside the classroom. F. THAT the leaders of all other business functions launch similar projects and request transition funding and external consulting services if and when it becomes clear that there is an advantage to doing so. r r PROPOSED PLAN OF ACTION FOR THE DESIGN AND IMPLEMENTATION OF EFFICIENT AND EFFECTIVE BUSINESS PRACTICES r , , APPENDIX B March 23, 1998 Activity Centre Action Timeline Expected Results/Responsibility Centre Senior Staff Select Steering Committee February 25, 1998 Committee named: J. Brennan, M. Clarke, B. Stollery, J. Vair, B. Viney Steering Committee Develop proposed Action Plan March 3, 1998 Board Report March 9, 1998 Board Approval of proposed Action Plan March 9, 1998 Board Motion Financial Services Prepare proposed Transition Fund submission March 20, 1998 M -L. Chartrand, R. Sullivan, H. MacDonald Board Approval of Transition Fund submission March 23, 1998 Board Motion Administrative Services Prepare advertisement for Expression of Interest and place in newspapers April 11 and 15, 1998 Complete - M. Carson, G. Tinslay Administrative Services Evaluate submission and pre - qualify firm April 23 -24, 1998 M. Carson, G. Tinslay, Steering Committee Steering Committee Develop scope of service and evaluation criteria By April 27, 1998 Scope of Service Evaluation Criteria Central Departments Redefine required Delivery Systems in light of long -term funding available May 1 -June 30, 1998 Superintendents Financial Services Report to Board on status of application to Ministry's Transition Fund June 1, 1998 M -L. Chartrand Steering Committee Report to Board on project June 1, 1998 Board Report Steering Committee Evaluate consulting service proposals June 1 -12, 1998 Consultants chosen Steering Committee Consultants carry out projects July 1 -Sept. 15, 1998 Central Departments Steering Committee /Senior Staff Evaluate consultants' reports and recommend appropriate implementation October 1998 Board Report PROPOSED PLAN OF ACTION FOR THE DESIGN AND IMPLEMENTATION OF EFFICIENT AND EFFECTIVE BUSINESS PRACTICES APPENDIX C March 23, 1998 N Activity Centre Action Timeline Expected Results/Responsibility Centre Senior Staff Select Steering Committee February 25, 1998 Committee named: J. Brennan, M. Clarke, B. Stollery, J. Vair, B. Viney Steering Committee Develop proposed Action Plan March 3, 1998 Board Report March 9, 1998 Financial Services Prepare proposed Transition Fund submission March 20, 1998 M -L. Chartrand, R. Sullivan, H. MacDonald Board Approval of proposed Action Plan and naming of Trustee to Steering Committee March 23, 1998 Board Motion Steering Committee Prepare and place in newspapers advertisement for Expressions of Interest for selection of consultant to Steering Committee April 1, 1998 Steering Committee, M. Carson, S. Meilleur Administrative Services Prepare and place in newspapers advertisement for Expressions of Interest for consultants for identified areas April 11 and 15, 1998 Complete - M. Carson, S. Meilleur Administrative Services Evaluate submission and pre - qualify firm April 23 -24, 1998 M. Carson, S. Meilleur, Steering Committee Steering Committee Develop scope of service and evaluation criteria By April 27, 1998 Scope of Service Evaluation Criteria Steering Committee Evaluate proposals and recommend selection to the Board April 27, 1998 Board Motion Board Approval of Transition Fund submission March 23, 1998 Board Motion Central Departments Redefine required Delivery Systems in light of long -tern funding available May 1 -June 30, 1998 Superintendents Financial Services Report to Board on status of application to Ministry's Transition Fund June 1, 1998 M -L. Chartrand Steering Committee Report to Board on project June 1, 1998 Board Report Steering Committee Evaluate consulting service proposals June 1 -12, 1998 Consultants chosen Steering Committee Consultants carry out projects July 1 -Sept. 15, 1998 Central Departments Steering Committee /Senior Staff Evaluate consultants' reports and recommend appropriate implementation October 1998 Board Report r Ottawa - Carleton District School Board r BUDGET CHANGE OPTIONS Option Restructure Central Administration staffing positions (excluding the Special Education and Student Services department, the Program and Information Technology departments and the E.A.P. service which are dealt with in separate Budget Change Options sheets). PnFanFiai rnet Caving In 1998 -1999 $2,570,000 Annualized Saving $3,180,000 Date No later that September, 1998. Required Investment /Cost to Implement Staff Impact • Severance costs. See below in the "Impact of the Change" section. • Costs to improve the information technology and the use of that information technology to provide assistance given the reduced number of staff positions. Impact of Chan &e (e.g., on Student Education, School Community, Board -wide) The reductions in central administration staffing positions will have a significant effect on the types of services and the level of services that will be provided to trustees, schools, staff, federation /unions, and the community, including school councils and parents. The reductions in central administration staffing positions (excluding those areas noted above which are being dealt with on separate sheets) is summarized as follows: Current Proposed Reduction Reduction in Positions as Staffing in Positions a Percentage of Department (s) Level F.T.E. Current Staffing Levels Notes All Superintendents and their 26.0 4.0 15.4% 1 Superintendent and 1 Administrative Support Administrative Support Staff position reduced as of September, 1998 and the other Superintendent and Administrative Support positions as of September, 1999. Director's Office Board Services 37.5 9.0 24.0% Communications 31.9% Human Resources 58.7 18.7 Business Departments positions as of September, 1999; these numbers are 125.0 28.5 22.8% 21.5 positions effective September, 1998 and a subject to further review and further 7.0 may be adjusted. Administration and Planning Services 23.0 5.0 21.7% (Intl. Transportation). School Operations � 2.0 2.0 100.0% 1 -position effective September, 1998 and the oher effective September, 1999. position V M Z X M M j �W Ottawa - Carleton District School Board BUDGET CHANGE OPTIONS Restructure Central Administration (continued) Decision Constraints (e.g., Collective Agreements, Legislation, Board Policies and Practices) Employment standards provisions, collective agreement provisions, provisions of the non - affiliated employee handbook, policies of the former boards and the common law will provide some requirements for severance payment - related costs (including any service gratuity). These severance - related costs do not prevent the reduction in the number of staff positions but they may reduce the savings achieved in the first year (1998 -99). Time Required to Implement Four to six months Success Evaluation Criteria Decision Dates /Milestones Board approval of the budget. A reduction in central administration staff costs, while allowing the system to continue to operate (especially during the transition to the new funding model). c, (woe A D 'v M M z v 1C v M M N